MGIC, Radian Write Down Value of C-BASS

The two mortgage insurance firms that control C-BASS have written down the value of their investment in the New York-based specialty servicer by more than $1 billion combined, according to company statements.Meanwhile, in trading on Tuesday the share price of the two MIs -- MGIC Investment Corp., Milwaukee, and Radian Group, Philadelphia -- had fallen by 9% and 10%, respectively. MGIC and Radian, which are merging, control C-BASS, which in turn owns Houston-based Litton Loan Servicing, a $48 billion servicer of subprime loans. MGIC had valued its share of C-BASS at $516 million, Radian, $518 million. In separate statements, MGIC said its investment in C-BASS "could be" fully impaired, while Radian said its investment is "materially impaired." On Monday night the two MIs said C-BASS has been the subject of "unprecedented" margin calls. The mortgage insurers can be found online at http://www.mgic.com and http://www.radianmi.com.

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